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Apple's Retail Push into China Still Limited, But Ramping Up

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coolspot18

macrumors 65816
Aug 16, 2010
1,051
90
Canada
thelookingglass said:
These new stores are all sensible locations, except for Dalian. Shenzhen and Guangzhou are two of the richest cities in the country. C=
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Dalian apparently has a growing IT industry. One of Intel's fabs are located there.

Still the city has 6 million people, more people than most US cities.


tann said:
Is 'China proper' what people officially call Mainland China?
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"Technically" two governments use the name China... People's Republic of China (Mainland Communist China) and Republic of China (Taiwan).

Both I think agree that China refers to both the Mainland and the Island of Taiwan. Who controls what is and who has the right to the name China is a messy affair due to the civil war in the 50s. But internationally including the United States have viewed the mainland communist government as the defacto rulers of "China" and the sole legitimate government of China. I personally would like to see all of China reunited - but only after Mainland China develops to the same levels as Hong Kong and Taiwan and develop the same sense of individual rights and freedoms.
 
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macchelsea

macchelsea

macrumors newbie
Jan 23, 2010
18
24
Hong Kong
There are rumors for a 3rd and 4th Apple Stores in Hong Kong. One that is more certain is at a shopping mall called Festive Walk in the Kowloon Tong district, and the store is now under intensive renovation work. It’s not as big as the one at the IFC Mall, but it’s easily one of the biggest in that mall. The 4th one is rumored to be located in the Tsimshatsui district at a building called “The Toy House” (but there is no toy shop in that building, just named apparently because it’s owned by toy manufacturer).
 
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PaulChowHK

macrumors regular
Jan 13, 2011
169
0
The store in Hong Kong very beautiful but they kill all the small Apple Stores like my friends at New Vision. They going to be a Walmart like in USA trying to get all the business and forgetting all the small retailers who helping them develope the market. But we knowing all that when you getting so big the only way going is down and down they will going.
 
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digitalhen

macrumors regular
Jan 10, 2006
219
64
PaulChowHK said:
The store in Hong Kong very beautiful but they kill all the small Apple Stores like my friends at New Vision. They going to be a Walmart like in USA trying to get all the business and forgetting all the small retailers who helping them develope the market. But we knowing all that when you getting so big the only way going is down and down they will going.
Click to expand...

The IFC store doesn't seem to be bothering them too much. They just [re-]opened a store in Tsing Yi, and it's always busy.

Whether people actually buy anything there is another question.
 
G

gloryunited

macrumors 6502
Oct 29, 2010
316
1
charlieegan3 said:
Thats one cool looking Apple Store.
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Correct me if I'm wrong... I believe the Hong Kong IFC store is the most expensive in the world. (the rent at IFC mall is just crazy)

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macchelsea said:
There are rumors for a 3rd and 4th Apple Stores in Hong Kong. One that is more certain is at a shopping mall called Festive Walk in the Kowloon Tong district, and the store is now under intensive renovation work. It’s not as big as the one at the IFC Mall, but it’s easily one of the biggest in that mall. The 4th one is rumored to be located in the Tsimshatsui district at a building called “The Toy House” (but there is no toy shop in that building, just named apparently because it’s owned by toy manufacturer).
Click to expand...

I remember hearing rumours that said the Tsim Sha Tsui one will be one big glass sphere! :eek:
 
D

digitalhen

macrumors regular
Jan 10, 2006
219
64
gloryunited said:
Correct me if I'm wrong... I believe the Hong Kong IFC store is the most expensive in the world. (the rent at IFC mall is just crazy)
Click to expand...

I think they're paying about 1/2 million USD a month (15000 sq ft x ~250 HKD per sq ft). They could also be paying zero, given the renovation they did, foot traffic it brings to the mall and surrounding facilities.

Apple makes about 466 USD (3613 HKD) per sq ft per month at it's Fifth Avenue store, and I'd imagine the IFC mall is the same, if not better, given the adulation for Apple here.

Figures are from 2011, but they'll have only gone up since then.

All in all, 7 million USD total revenue, on a 1/2 million USD outlay is pretty good, even after other costs like staff and the actual products.

Sources:

SCMP: http://www.presidiopenthouse.com/realestatefundmanager/hk_retail_ifc2011.jpeg
CNet: http://news.cnet.com/8301-13506_3-20096519-17/another-apple-win-retail-sales-per-square-foot/
 
MacDownunder

MacDownunder

macrumors member
Jun 26, 2006
88
54
Melbourne, Australia
HK Store not that central

Having been to HK three times in last twelve months I'd have to say the Apple store is not near to central business or shopping districts. Whilst it is easy and cheap to commute in HK, I did not visit the store once during any of these visits.

I'd imagine to truly penetrate HK they need much more in way of "official" Apple stores. If you can have three official Nike (I am not talking copy shops) stores in same street literally shops apart that all seem to prosper so why not more Apple stores.

Can only imagine how busy one (or more) would be if they put one in Monkok, even central and then WanChai, or City Gate Tung Chung....the list goes on.

Unless you've been to a place like this it's hard to understand the population densities and the potential customer base that HK and indeed great China offer companies like Apple.
 
D

digitalhen

macrumors regular
Jan 10, 2006
219
64
Not sure how you figure that. It's basically in Central. In a premium mall, 5 minutes walk from the Star Ferry, HK station, Central station (4 train lines). Central is absolutely packed with shops (and shoppers).

The offices on top (and one stop away at Kowloon) are where all the banks and finance are in HK. The mall and the store itself is rammed all weekend.
 
flameproof

flameproof

macrumors 6502a
Jan 14, 2011
615
18
MacDownunder said:
I'd imagine to truly penetrate HK they need much more in way of "official" Apple stores.
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There are official re-sellers. Fortress, Broadway, Sunning, Citicall and and and... must be 100+

http://www.apple.com/hk/en/reseller/index.php

And beside 'official' stores, there are many outlets that do sell Apple products.

Hence, IMHO a 2nd Apple Store in Hong Kong will bring in only minor additional revenue.
 
flameproof

flameproof

macrumors 6502a
Jan 14, 2011
615
18
digitalhen said:
I think they're paying about 1/2 million USD a month (15000 sq ft x ~250 HKD per sq ft). They could also be paying zero, given the renovation they did, foot traffic it brings to the mall and surrounding facilities.
Click to expand...

I think they have to pay something, but probably get some discount. Renovation cost is usually to be paid by the occupier. But who knows.....

I am sure IKEA got a very good deal in Megabox, which would be otherwise dead.

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haruhiko said:
except the fact that Broadway is still selling the iPhone 4S at inflated prices.
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Is it?

When the iPad3 came out Broadway had it for the original price - BUT - you had to buy an ugly cover and some other stuff for another 1000 or so. No thanks!
 
haruhiko

haruhiko

macrumors 604
Sep 29, 2009
6,529
5,875
MacDownunder said:
Having been to HK three times in last twelve months I'd have to say the Apple store is not near to central business or shopping districts. Whilst it is easy and cheap to commute in HK, I did not visit the store once during any of these visits.

I'd imagine to truly penetrate HK they need much more in way of "official" Apple stores. If you can have three official Nike (I am not talking copy shops) stores in same street literally shops apart that all seem to prosper so why not more Apple stores.

Can only imagine how busy one (or more) would be if they put one in Monkok, even central and then WanChai, or City Gate Tung Chung....the list goes on.

Unless you've been to a place like this it's hard to understand the population densities and the potential customer base that HK and indeed great China offer companies like Apple.
Click to expand...

Mongkok, Wan Chai and Tung Chung...What a bad idea, these places are not where high net worth shoppers usually go to.

IFC is at the core part of the CBD in HK. Maybe you need to get your facts checked.
 
G

gloryunited

macrumors 6502
Oct 29, 2010
316
1
ifcmall2.jpg


That spiral glass staircase is gorgeous. :cool:
 
Ping Guo

Ping Guo

macrumors 6502
Oct 5, 2008
349
0
Kuala Lumpur, Malaysia
MacDownunder said:
Having been to HK three times in last twelve months I'd have to say the Apple store is not near to central business or shopping districts. Whilst it is easy and cheap to commute in HK, I did not visit the store once during any of these visits.

Can only imagine how busy one (or more) would be if they put one in Monkok, even central and then WanChai, or City Gate Tung Chung....the list goes on.
Click to expand...

Not near to central business districts? It's in the IFC mall which is a major transport and shopping hub in HK... the metro stop is called Central. I believe it's suspended over Connaught Road which is the heart of the business district.

Mongkok is more of a discount clothing and electronics area, not really Apple prime real estate. Wanchai not sure, it's more small boutiques and such.
 
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Konrad

Konrad

macrumors 6502
Aug 26, 2009
457
107
Bi-continental
Apple needs to ensure in all of it's stores public restrooms. Even in their US locations this is often a problem. It is simply unforgivable, given the size of their facilities, kids areas, length of transactions, in fact for any retailer not to provide a damn toilet and a sink. Who cares how grand and beautiful the place is when you have to threaten the personnel to either immediately open the back door or the five year old will urinate right now, right here in the iPad section.
 
flameproof

flameproof

macrumors 6502a
Jan 14, 2011
615
18
Konrad said:
Apple needs to ensure in all of it's stores public restrooms. Even in their US locations this is often a problem. It is simply unforgivable, given the size of their facilities, kids areas, length of transactions, in fact for any retailer not to provide a damn toilet and a sink. Who cares how grand and beautiful the place is when you have to threaten the personnel to either immediately open the back door or the five year old will urinate right now, right here in the iPad section.
Click to expand...

Lack of restrooms is really no problem in Hong Kong, there are easy workarounds for those in need....!
 

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Kwramm

macrumors newbie
Sep 5, 2007
11
0
MacDownunder said:
Can only imagine how busy one (or more) would be if they put one in Monkok, even central and then WanChai, or City Gate Tung Chung....the list goes on.
Click to expand...

HK is so small, you can walk from central to admiralty easily. IFC mall is always packed and its a very upscale location. It's a flagship location for the very first store. It ain't "in front of your door", but not a single Apple store I know is particularly close to any regular middle class residential area. The first store they open in a city is always a showcase and in a premium location. Additional stores are usually other busy shopping areas. Same pattern in Munich, Beijing, Shanghai, London, ...

HK is lucky because it's small. Even from Mong Kok you're at the Apple store in no time - and from WanChai? it's like 10 mins max. You could even walk there in 20 - 25 mins.
Maybe not the perfect location but lightyears ahead of many other Apple store locations.

If Apple were after the big money then they just need to put down a store next to the mainland border crossing.
 
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